All Forum Posts by: Jim Goebel

@Jason Coppage

The little I know of DC, I don't know that the numbers will pencil out.  

First step would be to run numbers, on an ROI/ROE basis. Look for stuff for sale and estimate best you can if returns can be had. If not, time to move on to another market.

@Christine Krizenesky

Be careful there.  Not really.  Of course the contractors on these forums will tell you, yes.  But, no.  I wouldn't do that.  Offer to pay them out on day 1 or 2 when they hit a milestone goal.  If they can't afford to work for one day then you don't want to be working with them.

@Clint Shelley

Hi Clint, thanks for the info.  Awesome stuff.  I've been digging into this a little more.  We will be looking a bit closer at the land tomorrow, but I have 'kind of' verified what you've communicated - at least enough to continue evaluating this land much more heavily.  I'm going to PM you, if that's ok, as it looks like you have a wealth of experience in this area which I do not.

@Kevin Christensen

Congrats on the success.  You have really been 'getting the lead out' !!!

We've found that the initial (individual, and owner occupant) rates were much better. However, your 4% especially if that's commercial rates, is very good. Portfolio lending at least from my experience adds 1-1.5% to your APR compared to term loans.

No reason to move those good rates over unless you have to.  We just transitioned into the commercial lending world, and so far so good.  Rates are just a little higher.

@Carlos Pelegrina

At least around here, a boiler / radiator system kind of dates a place.  If it doesn't cost too much more, and especially if you have the opportunity (ie: already have a place opened up for rehab) then I'd advise to go with the central (forced air) system.

I don't know how operating costs compare, to be honest.

@Victor Robinson

I'm not recommending out of state investing but what returns are you seeing in a buy and hold?  Especially with an outlook to add a lot of value in targeting the right kinds of assets, you might check that assumption (that returns aren't to your liking).

Other than that, I don't really know what to tell you.  We've thought about but haven't done any of those investing strategies you list.

@Jaden Adams

You state 'everyone's' going to college nowadays.  Not true.  The majority still do not in the US.  Only about 30 % have their bachelors.

Also, you're 19.  You won't get this experience for quite a while going down the RE agent track, but if you are hiring folks, you'll quickly find out why college grads are more in demand, and tend to make better money.  It's hard to put into words but I do hope later on in your life you'll gain that perspective and thank yourself for investing in your education.  

By the way, the 120k in debt is very little compared to the difference in average earnings of a college grad vs. not.

@Grant Liddle

Can you pay him more and get him to roll through the project quicker?

Or, can you have an honest conversation with him about bringing someone else in to handle a chunk of it, to let him move on for a stretch?

The other thing I think of when reading this post, is - based on what you're describing I'm wondering if engineering may have (or might still) save you time/effort/money in the whole scheme of things.  If you get a good set of plans to build from, you can get just about any with a little construction experience to build it for you.  

Questions below

1. Approx how much extra does flood insurance run?
2. In terms of building on the land (I'm an engineer) I'm wondering if there are major hurdles I should be aware of OTHER Than the increased costs of building - more related to regulatory, financing, and other risks.  I'm confident I can design what we need to withstand a flood (even large flood) from a construction perspective.  I'll need to run the numbers on that but I'm confident I can handle the design and engineering, and construct-ability.
3. Is bringing in tons and tons of dirt from another location really an option for us?  I know most jurisdictions have regulations about removing dirt (have to submit a site runoff / remediation plan) , but I'd bet we could relocate dirt from way out in the country without any issues. 
4. Does the FEMA map get redrawn every so often, if say we were able to do substantial site work to get our elevation to a point where we are no longer in the flood plain, to build?

For now, that's a good starting point for a discussion, I think.

@Joe Villeneuve

The point is some projects justify a full replacement, and some do not.  While 'most' of the time it may make sense to pull the trigger on a full roof replacement (or perhaps a furnace replacement) all at once, it will depend on the circumstances.  I think it's not wise to advocate always doing so, for multiple reasons, a few already pointed out.

I can come up with specific circumstances where we can all agree a full furnace replacement wouldn't make sense and I can also come up with specific circumstances where a full roof replacement wouldn't make sense.

@Jim Young

With the above said, it seems you stated that most of the roof is towards the end of its life.  If operating capital is not of a primary concern/constraint, then I think you're right to consider tax treatments of a partial vs. full solution.  I can't speak to that but I'd think that's a secondary consideration to the below (at least how I'd approach it, anyways).

I think since cash/operating capital is not a primary consideration, it is good to consider that a good chunk of the costs (and therefore price) associated with a project like this is getting the crew mobilized to do the work, and you may end up 'double paying' for some of that.

The other consideration I can think of against doing the half roof is just the shingle matching aspect.  Even though you stated that you can't see both at once, if they aren't a perfect match, you get into the aesthetic look over time that just might look 'patched together.'  Even the difference in age may make the weathering look different for the different parts of the roof.  This may affect your asset's ability to hold value (real or perceived) over time, perhaps (low risk) for appraisals for refinances, etc - but (higher risk) during a more in depth diligence/inspection when you're selling.